Venezuela’s resource curse

Author: John Crabb | Published: 26 Feb 2019

This issue, IFLR asked readers if bondholders
should accept reduced repayments to help the country back onto
its feet

With Venezuela installing a new president and potentially a
new administration, should the international financial industry
consider reducing and/or deferring claims on Venezuela and its
public sector borrowers so as not to further hamper its
economic reconstruction?

The year 2019 has already been a rollercoaster of emotions
for the Venezuelan people – which, for a country that
has been rocking for several years now, is really saying
something. Juan Guaidó, the leader of the opposition and
elected leader of the National Assembly since early January,
declared himself interim-president of Venezuela in early
February. After ratification by the US, Canada, Brazil and
other Latin American countries came acceptance from the EU and
other global players. This effectively creates a two-tier
presidential system, where both the incumbent Nicolas Maduro
and Guaidó claim legitimacy....